U.S. stocks finished with back-to-back losses on Monday, handing Dow industrials an almost 1,193-point loss in the past two trading days, as investors continued reacting to remarks by Federal Reserve Chairman Jerome Powell, who underscored policy makers’ resolve to squeeze out inflation even if it creates economic pain.
- The Dow ended down -184.41 or -0.57%
- The S&P 500 finished lower -27.05 or -0.67%
- The Nasdaq closed down -124.04 or -1.02%
Stocks had recorded their worst day on Friday, when the Dow industrials tumbled 1,008.38 points, or 3%, to close at 32,283.40; that was the biggest percentage decline since May 18. The S&P 500 slid 3.4%, its biggest drop since June 13, and the Nasdaq Composite tumbled 3.9%, the largest drop since June 16. What drove markets?
Markets remained rattled by Powell, who made blunt comments about the central bank’s commitment to bringing down high inflation on Friday during a speech at the Kansas City Fed’s annual symposium at Jackson Hole, Wyo. Nonetheless, there were some glimmers of hope among stock investors on Monday, when Dow Industrials and the S&P 500 briefly and periodically flashed green. Pockets of buying could also be seen in the S&P 500’s energy, utilities, and consumer-staples sectors.
While Friday was about the ”shock” to markets that there isn’t going to be a Fed pivot or shift to easier policy, Monday is about “the market saying, `Well, that’s what Jay Powell says, but the facts may overwhelm that view over time,’ “ said Brad Conger, deputy chief investment officer at Hirtle Callaghan & Co. in West Conshohocken, Pa., which manages $20 billion……..
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